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3 . 1 Priory Pudding Place is a roadside pudding company in Priory St . Ann. The firm specializes in a variety of puddings. Tour
Priory Pudding Place is a roadside pudding company in Priory St Ann. The firm specializes in a variety of puddings. Tour operators would stop at the facility to allow visitors to taste a slice of authentic Jamaica cuisine The firm has provided the following data regarding its operations i Direct costs for raw materials amount to $ per unit ii Indirect costs for packaging and garnishing is $ per unit iii. Annual fixed costs consist of Administrative expenses $ Selling and distribution $ iv The pudding is sold for $ per unit Required : a State four assumptions of the break even analysis All costs can be classified into fixed or variable components Fixed costs remain unchanged over the given time Variable costs will change directly with output Revenue will increase directly with output b Calculate the break even point in units Break even in units Total Fixed cost Selling price per unit variable cost per unit $$ The firm is planning to produce the pudding in batches as follows i The first units to be sold hot off the fire for $ each ii The next units will be sold to restaurants for $ each iii. The remaining units will packaged and sold to the tourist Resorts for $ each Required : a Determine the break even point in units under this arrangement The firm is planning to diversify its operations by producing three product lines Cornmeal Pudding, Potato Pudding, and Dukunno, with data as follows Cornmeal Pudding Potato Pudding Dukunno Selling Price Per Unit $ $ $ Variable Cost Per Unit $ $ $ It is anticipated that the potato pudding will account for of the sales, Dukunno and cornmeal pudding Arising from this new arrangement the fixed cost will increase by $ Required b Determine the number of units of each products that is required to break even
Priory Pudding Place is a roadside pudding company in Priory St Ann. The firm specializes in a variety of puddings. Tour operators would stop at the facility to allow visitors to taste a slice of authentic Jamaica cuisine
The firm has provided the following data regarding its operations
i Direct costs for raw materials amount to $ per unit
ii Indirect costs for packaging and garnishing is $ per unit
iii. Annual fixed costs consist of
Administrative expenses $
Selling and distribution $
iv The pudding is sold for $ per unit
Required :
a State four assumptions of the break even analysis
All costs can be classified into fixed or variable components
Fixed costs remain unchanged over the given time
Variable costs will change directly with output
Revenue will increase directly with output
b Calculate the break even point in units
Break even in units Total Fixed cost Selling price per unit variable cost per unit
$$
The firm is planning to produce the pudding in batches as follows
i The first units to be sold hot off the fire for $ each
ii The next units will be sold to restaurants for $ each
iii. The remaining units will packaged and sold to the tourist Resorts for $ each
Required :
a Determine the break even point in units under this arrangement
The firm is planning to diversify its operations by producing three product lines
Cornmeal Pudding, Potato Pudding, and Dukunno, with data as follows
Cornmeal
Pudding Potato
Pudding Dukunno
Selling Price Per Unit $ $ $
Variable Cost Per Unit $ $ $
It is anticipated that the potato pudding will account for of the sales,
Dukunno and cornmeal pudding
Arising from this new arrangement the fixed cost will increase by $
Required
b Determine the number of units of each products that is required
to break even
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